BILL NUMBER: SB 486	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 15, 2013

INTRODUCED BY   Senator DeSaulnier
    (   Coauthor:   Senator   Liu
  ) 

                        FEBRUARY 21, 2013

   An act to add Chapter 1.5 (commencing with Section 13985) to Part
4.5 of Division 2 of Title 2 of the Government Code, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 486, as amended, DeSaulnier. Office of Legal Compliance and
Ethics.
   Existing law establishes the Transportation Agency 
(agency)  in state government with various duties and
responsibilities.
   This bill would create the Office of Legal Compliance and Ethics
 (office)  within the agency  and require the
director of the office to organize the office with the approval of
the audit committee, as defined. The bill would vest the office 
with responsibility for, among other things, acting to prevent and
detect serious breaches of Department of Transportation 
(department)  policy, and fraud, waste, and abuse 
within the department  , including any acts of criminal conduct
 within the department  .  The bill would
require the office to conduct internal audits of the department, and
would provide that the office have access to specified records and
personnel, and other material necessary to conduct audits and
investigations.  The bill would require the director of the
office to report quarterly, at a noticed public hearing of the
commission, regarding performance of and activities related to
investigations and to report annually to the Governor and the
Legislature with a summary of his or her investigations. The bill
would require the summary to be posted on the agency's Internet Web
site.
   The bill would require the director to provide information and
evidence relating to criminal acts to the State Auditor's office and
appropriate law enforcement officials  and to  
, and  refer matters for further civil, criminal, and
administrative action to appropriate administrative and prosecutorial
agencies, including the Attorney General.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 1.5 (commencing with Section 13985) is added to
Part 4.5 of Division 2 of Title 2 of the Government Code, to read:
      CHAPTER 1.5.  OFFICE OF LEGAL COMPLIANCE AND ETHICS


   13985.  (a) There is within the Transportation Agency an Office of
Legal Compliance and Ethics.
   (b) As used in this chapter, the following terms shall have the
following meanings:
   (1) "Agency" means the Transportation Agency. 
   (2) "Audit committee" means a committee comprised of the
commission and the secretary.  
   (2) 
    (3)  "Commission" means the California Transportation
Commission. 
   (3) 
    (4)  "Department" means the Department of
Transportation. 
   (4) 
    (5)  "Director" means the Director of the Office of
Legal Compliance and Ethics. 
   (5) 
    (6)  "Office" means the Office of Legal Compliance and
Ethics. 
   (6) 
    (7)  "Secretary" means the Secretary of the
Transportation Agency.
   13985.1.  (a) For purposes of administration, the 
secretary   director shall organize the office with
the approval of the  Governor and the commission 
 audit committee  .
   (b) The Governor shall appoint the director for a six-year term,
subject to advice and consent of the Senate. The director may not be
removed from office during that term, except for good cause. The
director shall report directly to the  commission 
 audit committee  .
   (c) The  agency   director  shall be
responsible for developing a proposed budget for the office in
consultation with the department  , the commission, and the
office  and the audit committee  . Funding for the
office shall come from savings related to the reduction of staff in
the Division of Audits and Investigations within the department due
to the division's transferred workload to the office. 
   (d) The director and office staff shall perform their duties and
functions in accordance with generally accepted audit standards
developed in consultation with the State Auditor.  
   (e) In the process of conducting audits and investigations, the
office shall have access to any and all department records to which
the Division of Audits and Investigations has access, including
information determined to be confidential and protected from
disclosure. The office shall have access to all employees,
contractors, subcontractors, and third-party books, records,
documents, and any other material necessary to conduct audits and
investigations. At the request of the office, copies of any records
or documents shall be provided. 
   13985.2.  The office shall be responsible for all of the following
as they relate to the department:
   (a) Acting to prevent and detect serious breaches of departmental
policy, fraud, waste, and abuse, including any acts of criminal
conduct within the department.
   (b) Independently and objectively reviewing and investigating
conduct described by subdivision (a), including, but not limited to,
all of the following:
   (1) Criminal activity in the department or committed on department
property.
   (2) Allegations of wrongdoing by department employees.
   (3) Serious breaches of department policy.
   (4) Significant issues relevant to the effectiveness of the
department. 
   (c) Conducting internal audits of the department to identify
potential improvements in efficiency and performance.  
   (c) 
    (d)  Ensuring that members of the commission and
department employees receive appropriate ethics training  by
recommending appropriate ethics policies and periodically reporting
to the commission on the status of the department's ethics training
program  . 
   (d) 
    (e)  Performing other duties assigned to the office by
the  commission   audit committee  .
   13985.3.  (a) The director shall report quarterly, at a noticed
public hearing of the commission, regarding performance of and
activities related to investigations.
   (b) The director shall report annually to the Governor and the
Legislature with a summary of his or her investigations. The summary
shall be posted on the agency's Internet Web site and shall otherwise
be made available to the public upon its release to the Governor and
Legislature. The summary shall include, but need not be limited to,
significant problems discovered by the office and whether
recommendations of the office relative to investigations have been
implemented by the department. The report shall be submitted pursuant
to Section 9795 and is not subject to the provisions of Section
10231.5.
   13985.4.  (a) The director shall provide information and evidence
relating to criminal acts to the state auditor's office and
appropriate law enforcement officials.
   (b) The director shall refer matters for further civil, criminal,
and administrative action to appropriate administrative and
prosecutorial agencies, including the Attorney General.